Dili protest calls for PM Alkatiri to go

Up to 2,000 protesters paraded through Dili in a convoy of trucks and motorcycles to call for the dismissal of East Timor's prime minister Mari Alkatiri and his government.

Allowed into Dili after striking a deal with Malaysian and Australian peacekeepers, protesters punched their fists in the air and chanted "bring down Alkatiri" as their trucks lumbered through the capital.

Draped in banners, the convoy of more than 40 trucks converged on government offices to demand the resignation of the unpopular prime minister, as crowds lining the streets waved their support.

The protesters, escorted and watched by peacekeepers, also chanted their support for President Xanana Gusmao, who addressed the crowd outside his office in suburban Dili.

Standing on a car, and guarded by Australian and Malaysian soldiers in the crowd around him, Gusmao told protesters his priority was to see peace return to East Timor.

He appealed to rival gangs of youths from eastern and western parts of the nation to help end the violence that has rocked Dili in recent weeks.

"Let me bring peace to East Timor and then we will resolve others matters," said Gusmao, as an Australian Black Hawk helicopter circled overhead, and armoured personnel carriers stood guard nearby.

"I do not want to see any more houses burned.

"No more burning, no more killing."

There were reports that groups of easterners threw rocks at the convoy, but Tuesday's demonstration was largely peaceful.

The protest was a blow to the embattled Alkatiri, who last week claimed he could muster the backing of thousands of supporters.

Earlier the convoy was halted on Dili's outskirts by peacekeepers who had warned they would prevent any violence.

After negotiating for about an hour, the convoy was allowed to proceed into Dili, on the condition protesters parade their banners and then leave the city again.

Australian military officer Lieutenant Colonel Mick Mumford said he had been warned of the approaching convoy.

"My job is to make sure it is not violent," he said earlier.

"We will not be stopping someone from exercising their democratic right to protest. However, we will be stopping them from any sort of violent protest and we are certainly postured to be able to do that if necessary.

"We will be making sure there aren't any weapons brought into Dili."

Earlier in the day, hundreds of young men looted a warehouse near the centre of Dili, running off with agricultural machinery, bags of grain, sheet metal and fertiliser.

Several plumes of smoke rose from buildings set on fire by rampaging gangs.

The wave of unrest in recent weeks is the worst since East Timor's bloody break for independence from Indonesian rule in 1999, when retaliatory militia groups devastated much of the territory.

Elections are scheduled for next year, but many East Timorese blame Alkatiri for the turmoil.

Alkatiri oversaw the dismissal in March of 600 striking soldiers, who clashed with loyalist troops and fled to the hills, opening the way for rival gangs from the nation's east and west to take to the streets.